Global Financial Stress Index Spikes Most Since 2011 US Downgrade

For the first time in four months, BofAML’s Global Financial Market Stress index has turned positive – signalling more market stress than normal.

As the spat between North Korea and the U.S. worsened, a measure of cross-asset risk, hedging demand and investor flows awakened from its torpor (after spending 78 straight days below zero – with stress below normal).

The problem the world faces is… did the world’s central bank money-printing safety net just lose its plunge protection power?

For context, this is the biggest spike in the Global Financial Stress Index since the US ratings downgrade in August 2011 – and a bigger shock than the August 2015 China devaluation…

Sunday night futures should be fun: potential war with North Korea, potential war with Venezuela, trade war with China, and civil war looming at home.